100Acc BDAs

On Balance Day to adjust the Trial Balance for prepaid insurance of $50 I would:

• Create Prepayment on the debit side $50 and increase insurance $50

• Create Prepayment on the credit side $50 and decrease insurance $50

• Create Prepayment on the debit side $50 and decrease insurance $50

• Create Accrued expense on the credit side $50 and increase insurance $50

• Create Accrued expense on the debit side $50 and decrease insurance $50

On Balance Day, to adjust the Trial Balance for wages owing of $50 I would:

• Create Accrued Income on the debit side $50 and increase wages $50

• Create Prepayment on the credit side $50 and decrease wages $50

• Create Prepayment on the debit side $50 and decrease wages $50

• Create Accrued expense on the credit side $50 and increase wages $50

• Create Accrued expense on the debit side $50 and decrease wages $50

The classification for prepayment is

• Current Asset

• Current Liability

• Expense

On Balance Day, to adjust the Trial Balance for interest owing on a term deposit of $50 I would:

• Create Accrued Income on the debit side $50 and increase interest received $50

• Create Income in advance on the credit side $50 and decrease interest received $50

• Create Prepayment on the debit side $50 and decrease interest received $50

• Create Accrued expense on the credit side $50 and increase interest received $50

• Create Accrued Income on the credit side $50 and decrease interest received $50

The classification for accrued expense is

• Current Asset

• Current Liability

• Expense

On Balance Day, to adjust the Trial Balance for interest owing on a loan of $50 I would:

• Create Accrued Income on the debit side $50 and increase interest on loan $50

• Create Income in advance on the credit side $50 and decrease interest on loan $50

• Create Prepayment on the debit side $50 and decrease interest on loan $50

• Create Accrued expense on the credit side $50 and increase interest on loan $50

• Create Accrued expense on the debit side $50 and increase interest on loan $50

The classification for accrued income is

• Current Asset

• Current Liability

• Expense

On Balance Day, to adjust the Trial Balance for rent received in advance of $50 I would:

• Create Accrued Income on the debit side $50 and increase rent received $50

• Create Income in advance on the credit side $50 and increase rent received $50

• Create Income in advance on the credit side $50 and decrease rent received $50

• Create Accrued expense on the credit side $50 and increase rent received $50

• Create Income in advance on the debit side $50 and decrease rent received $50

The classification for income in advance is

• Current Asset

• Current Liability

• Expense

On Balance Day a prepayment of insurance means that part of the insurance expense belongs to:

• This accounting period insurance expense

• The next accounting period insurance expense